Enablers segment attracts the highest amount once again in May, the segment has raised $147 million so far in 2024
Mumbai, June 18, 2024: Fintech startups raked in $34 million in May, which was marginally higher than funding in April. According to finance consulting and advisory firm Digital Fifth, in 2024 so far, fintech players have raised a total of $242 million, with fundraising in March peaking at $120 million. Companies operating in the enablers segment attracted the maximum quantum of funds. Other sectors which saw decent funding included Regtech, Lendingtech, and Paytech sector.
Nine companies in the enablers segment raised $23 million. IDFY, which operates in the Regtech segments, has emerged as the highest-funded startup this month, securing $10.7 million. Vegapay operating in the paytech segment raised $5.5 million and weathtech startup Wealthy raised $5.3 million. Segments like Lending-As-A-Service, Insurance Premium Financing and Loan Against Security Platform attracted funding in May.
Full-stack digital insurer GoDigit also secured substantial funding via a successful IPO in May. The positive response for the IPO indicates increasing technology penetration in the insurance sector and the scope for AI/ML and analytics providers to disrupt the space. Insurance in a box, also known as IaaS, platforms which offer plug-andplay services to fintechs and embedded finance players in partnership with insurance firms are expected to be future growth drivers in the segment.
“The fintech segment is at an inflection point. Looking forward, we expect companies operating in the cross border payments, digital Lending, insurtech and Anything as a Service (XaaS) Models to attract the attention of investors. Over the past two years, our analysis of fintech investments showed turbulent times in the industry. However, the slight increase in investment in May acknowledges and recognizes this sector’s inherent resilience,” said Founder, The Digital Fifth.
In 2024, the fintech industry has seen 40 rounds of funding so far. In the year, 39 unique fintech firms were funded and the enablers segment has raised a total of $147 million. Sectors like lending and payments raised $34 and $30 million respectively. Bangalore has remained the epicenter of funding in 2024, securing the highest share of fintech funding in India.
About The Digital Fifth:
Headquartered in Mumbai, The Digital Fifth offers digital finance consulting, solutions to the BFSI segments such as Banks, NBFCs, Fintechs, Wealthtechs, Regtechs, and Insurance organisations. The Digital Fifth is dedicated to driving change in the BFSI landscape as an integral part of the ecosystem. They provide specialised consulting services including Digital and Open banking advisory, BFSI Product & Program management, Technical due diligence, and Security and Compliance services.
